Former Kings Executive Pleads Guilty To Fraud Charges In Connection With Naming Rights Deals
SACRAMENTO (CBS13) — A former Sacramento Kings executive accused of siphoning funds meant for the team's arena naming rights into an LLC used to purchase millions of dollars of real estate has pleaded guilty to charges.
David was accused of siphoning millions from sponsorship naming rights deals between the Kings and business partners Golden One Credit Union and Kaiser Permanente. He has been ordered to repay $13,429,000. He also faces up to 20 years in prison, a fine of up to $250,000, and a three-year period of supervised release.
Investigators say David created his own limited liability company and directed Golden One Credit Union and Kaiser Permanente to make "advanced payments" of fees owed under the agreement, into the LLC he created.
California Secretary of State records show David created an LLC called "Sacramento Sports Partners" and listed Golden One and Kaiser Permanente foundation as partners.
That LLC purchased homes in Hermosa Beach and Manhattan Beach for millions of dollars.
The naming rights deal for the Golden 1 Center was valued at $120 million at the time.